Health Insurance Plans with No Claim Bonus

Quick Overview

Health insurance plans with no claim bonus reward you for not raising claims by increasing your cover over time. A No Claim Bonus (NCB) is applicable to both individual and family floater plans, increasing overall coverage irrespective of the insured member.

Worried your health cover may fall short when medical costs rise? NCB solves this by increasing your sum insured(SI) for every claim-free year, giving you higher protection without increasing your premium.

However, with evolving health insurance products, the traditional NCB is becoming less relevant. Many modern plans now increase your coverage even if you make a claim, ensuring consistent protection without relying on claim-free years.

This guide explains no claim bonus in health insurance, how it works, its benefits, and what to check before choosing a plan that fits your needs.

What is No Claim Bonus in Health Insurance?

In case you do not make any claims in a policy year, insurers reward you with an increase in your sum insured or a discount in your renewal premium. If you opt to increase your SI, the bonus accumulates each year until it reaches a set limit, such as 100% or more of your base cover.

Here’s a snippet of how IRDAI classifies NCB:

Health Insurance Plans with No Claim Bonus

How No Claim Bonus Works in Health Insurance Plans?

If you don’t make a claim in the first year, you get a reward like a premium discount or a higher sum insured. Few plans, like United India Family Medicare, offer either a premium discount or an increase in your SI. You can opt for a 5% discount for the first five years and 2.5% thereafter, up to 50%. But if you select an increase in your SI, your coverage can grow by 20% initially and 10% later, up to 200% of the base sum insured.
If you stay claim-free in the following years, this benefit continues and can keep increasing with each claim-free year.

Health Insurance Plans That Offer No Claim Bonus

Plan	Feature
Star Health Assure	Your SI increases by 25% each year if you do not make a claim in a policy year. However, the bonus stops once it reaches 100% of your base cover.
TATA Aig Medicare	Your SI increases by 50% each year you remain claim-free. However, this increase stops once it reaches 100% of your base cover.
Aditya Birla Activ Care Premier	Your SI increases by 10% each claim-free year, but the bonus stops once it reaches 50% of your base cover.
Care Classic	Your SI increases by 25% each year you remain claim-free. However, this increase stops once it reaches 150% of your base cover.
Aditya Birla Activ Fit Plus	Your SI will increase by 10% each claim-free year, but the bonus stops once it reaches 100% of your base cover.

Note: Policies that offer NCB follow a clawback rule where your bonus is reduced if you make a claim. The reduction is calculated on the base SI. For example, if your bonus grows by 20% each year, a claim can reduce it by 20% at renewal. However, any reduction applies only to the bonus component and will not impact your base sum insured.

Numerical Example

Policy Year	Total Sum Insured
Year 1	₹10,00,000
Year 2	₹12,00,000
Year 3	₹14,00,000
Year 4	₹16,00,000
Year 5	₹18,00,000
Year 6 (After Claim)	₹13,00,000

Note: The illustration assumes a base sum insured of ₹10 lakh with a 20% NCB (₹2 lakh) added each claim-free year. If a claim is made in Year 5, the accumulated bonus reduces by ₹5 lakh (50% of base SI), while the base cover remains unchanged.

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Benefits of Choosing Health Insurance Plans With No Claim Bonus

Stronger Financial Buffer: NCB increases your SI over time, building a larger safety net for rising healthcare costs and future medical needs.
Boosts Cover at No Extra Cost: NCB increases your total sum insured without charging for the added cover.
Portability and Migration Benefits: Your NCB can be transferred when switching insurers or plans. When you port your policy, this bonus can help reduce the waiting period on the additional cover in the new plan.
Protection with Add-ons: NCB protection riders help retain your bonus even after a claim. Care Classic’s Care Shield add-on enhances coverage by adjusting the sum insured for inflation, covering consumables, and protecting your NCB even after claims. However, Care Shield protects your NCB only for low-value claims, specifically when the total claim paid stays below 25% of the base SI.

Real Example of How NCB Helped During a Claim

One policyholder bought a health policy with a base SI of ₹10 lakh. Over time, because no claims were made during the policy years, the policy accumulated an additional ₹5 lakh in NCB, increasing the total available cover to ₹15 lakh.

Later, the policyholder had to undergo a major surgery after an unfortunate accident, and the hospital bill came to around ₹12 lakh. Since the policy had already grown through accumulated bonuses, the available cover was sufficient to cover the expense within the policy limits.

Key Takeaway: This is how NCB becomes useful in practice. It gradually increases your available cover over the years, so when a large medical expense does arise, you are better protected.

Things to Check Before Choosing a Health Plan With No Claim Bonus

Type of NCB

The insurer offers both options, either to increase your SI or offer a premium discount. An increase in sum insured is more valuable as it directly boosts your coverage.

Maximum Bonus Limit

Some plans cap the bonus at 100% of the base cover, while others allow higher accumulation. A higher cap ensures better long-term protection as your coverage increases significantly over time.

Reduction or Reset Rules

Review how your NCB is affected when you make a claim. In many plans, the bonus may be reduced or reset to zero after a claim.

Loyalty Bonus vs NCB

Check if the plan offers a loyalty or renewal bonus instead of NCB. A loyalty bonus increases your coverage simply for renewing the policy, regardless of claims.

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Conclusion

Choosing a health insurance plan with No Claim Bonus is a smart move and is especially helpful in family floater plans, where large medical bills can quickly deplete coverage. However, it should not replace a strong base cover. Start with at least ₹15 to ₹25 lakh to balance affordability and adequate protection.

An NCB is useful because it rewards you for staying claim-free. However, a benefit that grows your cover regardless of claims can be more reliable, as it ensures your protection continues to increase even when you need to use the policy.

If you’re comparing options from established insurers that offer a bonus irrespective of claims filed, start with our list of the best health insurance plans based on your medical needs.

Frequently Asked Questions

Is NCB a major factor when choosing a health insurance plan?

NCB is a useful add-on but not a deciding factor. Focus first on core features like coverage, network hospitals, and inclusions. Treat NCB as an extra benefit, not the main reason to choose a plan.

Should I avoid making small claims just to protect my NCB?

Not always. If you have corporate health insurance for smaller expenses, you can use that. Many modern plans also offer bonuses even after claims are made. Compare the claim amount with the NCB benefit before deciding.

Do insurers make errors while updating NCB in renewal policies?

NCB errors can occur at renewal, especially if the policy was modified, migrated, or processed offline. Always compare the renewed sum insured and bonus with your previous policy schedule. If you spot any mismatch, raise it with the insurer immediately for correction.

Is upgrading my plan better than skipping claims to protect NCB?

Yes, often it is. Choosing a higher-sum plan with NCB protection or a loyalty bonus is more practical than forgoing valid claims and paying out-of-pocket expenses.

If I renew my policy late, do I lose my No Claim Bonus?

If you renew within the grace period (15 days for the monthly premium payment mode and 30 days for quarterly/half-yearly/annual modes), your NCB continues as per IRDAI guidelines. But if the policy lapses beyond the grace period, your accumulated NCB may be lost, and benefits reset.

Last updated on: 29 Mar, 2026